Gridlines
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Gridlines share emerging knowledge on public-private partnership and give an overview of a wide selection of projects from various regions of the world. Gridlines are a publication of PPIAF (Public-Private Infrastructure Advisory Facility), a multi-donor technical assistance facility. Through technical assistance and knowledge dissemination PPIAF supports the efforts of policy makers, nongovernmental organizations, research institutions, and others in designing and implementing strategies to tap the full potential of private involvement in infrastructure.
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Private Sector Participation in Urban Rail : Getting the Structure Right
(World Bank, Washington, DC, 2010-04) Menzies, Iain ; Mandri-Perrott, CledanThere is growing interest in using rail transit, trams, metros, light rail, to solve urban transportation problems, particularly road congestion and air pollution. In developing urban rail projects, a range of major cities around the world have turned to public-private partnership models, to leverage both public and private resources and expertise. Dissecting the successes and failures of public-private urban rail schemes, this note examines how policy makers can best deal with the main risks involved in designing, procuring, and implementing such schemes. It also draws lessons on best practice in developing and managing contractual arrangements that can help ensure their success and sustainability. -
Publication
Private Participation in Transport : Lessons from Recent Experience in Europe and Central Asia
(World Bank, Washington, DC, 2009-06) Monsalve, CarolinaFacing fiscal constraints, many governments in Central and Eastern Europe and Southeastern Europe have pursued private finance for transport infrastructure more to move investments off budget than to improve efficiency and services. Results have been mixed and suggest a need to focus more on public-private partnerships (PPPs) that can achieve value for money. Today's economic environment will reduce the potential for PPP projects in the short term. Some PPP projects at an advanced stage of procurement may need additional public support, while ambitious projects may need to be phased to reduce their scale to what the market can absorb. -
Publication
New Needs for Technical Assistance : Responding to the Effects of the Financial Crisis on Private Participation in Infrastructure
(World Bank, Washington, DC, 2009-06) Leigland, James ; Russell, HenryIn developing countries the global financial crisis is leading to serious difficulties for infrastructure projects with private participation. In some cases governments are responding by simplifying their project approval processes or by substituting public for private financing. Even if markets recover quickly, these responses could pose significant risks. Containing those risks and dealing with the effects of the financial crisis calls for specialized technical assistance in assessing contingent liabilities, maintaining existing assets, assisting projects in distress, and maintaining a project pipeline. -
Publication
Does the Private Sector Deliver on its Promises? Evidence from a Global Study in Water and Electricity
(World Bank, Washington, DC, 2008-05) Gassner, Katharina ; Popov, Alexander ; Pushak, NataliyaIs private operation better than public when it comes to utilities; a recent global study funded by the World Bank and Public-Private Infrastructure Advisory Facility (PPIAF) examines the effect of private sector participation in electricity distribution and water and sanitation services. Using a data set of more than 1,200 utilities in 71 developing and transition economies, the study finds that privately operated utilities convincingly outperform state-run ones in operational performance and labor productivity. -
Publication
Worldwide Trends in Private Participation in Roads : Growing Activity, Growing Government Support
(World Bank, Washington, DC, 2008-05) Queiroz, Cesar ; Izaguirre, Ada KarinaPrivate participation in roads revived strongly in developing countries in 2005-06. The activity was concentrated in green field projects and in Asia and Latin America. The main reason for the revival has been the willingness of governments to provide support needed to attract the private sector. Nevertheless, governments need to be aware of the potential risks of such support. And because of the monopolistic features of road projects, they also need to ensure good governance so that the public reaps the full benefits of the private sector's involvement. -
Publication
What it Takes to Lower Regulatory Risk in Infrastructure Industries : An Assessment and Benchmarking of Brazilian Regulators
(World Bank, Washington, DC, 2007-09) Correa, PauloThis article points out that regulatory governance-how regulators manage concession contracts, or other public-private contractual arrangements and sector laws-can affect the private sector's perception of regulatory risk and thus the availability of private capital for infrastructure projects. Four key elements of the regulatory governance structure can reduce the risk of regulatory failure: political and financial autonomy, decision-making structures that reduce regulatory discretion, access to effective enforcement and other regulatory tools, and efficient rules of accountability. This note presents an analytical framework based on those four elements and applies it in assessing regulatory governance in Brazil. -
Publication
Big Challenges, Small States : Regulatory Options to Overcome Infrastructure Constraints
(World Bank, Washington, DC, 2007-05) Ehrhardt, David ; Oliver, ChloëSmall island economies face special challenges in providing affordable infrastructure services. Effective regulation can help, by encouraging providers to seek innovative solutions better suited for small and remote islands. But conventional regulation may be out of reach for small islands, requiring more money, competence, and independence than they have. Low-discretion rules and light or regional regulatory bodies may be good alternatives. -
Publication
Matching Regulatory Design to Country Circumstances : The Potential of Hybrid and Transitional Models
(World Bank, Washington, DC, 2007-05) Eberhard, AntonDeveloping countries attempting to implement the standard model of independent regulation have encountered many problems and challenges. These may arise when a regulatory system is incompatible with the country's regulatory commitment and institutional and human resource endowment. Selecting from a menu of regulatory options to create a hybrid model -- one that best fits a country's own circumstances and challenges -- can improve regulatory performance. -
Publication
Lifting Constraints to Public-Private Partnerships in South Asia
(World Bank, Washington, DC, 2006-05) Bhatia, Bhavna ; Gupta, NeerajToday policymakers increasingly recognize that public-private partnerships (PPPs) in infrastructure offer the most promise for developing infrastructure and improving services. Countries in South Asia face a dual challenge in infrastructure: many households and businesses lack access to services, and those that do have access suffer from unreliable and poor-quality service. This paper recommends minimizing restraints by: building consensus for PPPs, moving toward cost recovery, improving transparency, enhancing government capacity, fostering effective regulation, and easing financial constraints. -
Publication
Is the Public Sector Comparator Right for Developing Countries? Appraising Public-Private Projects in Infrastructure
(World Bank, Washington, DC, 2006-04) Leigland, JamesAfrican officials have shown new interest in infrastructure projects involving private participation. But with so little experience with such projects, these officials often have limited knowledge about how best to assess their value for money. Some experts have suggested that developing countries use the method centering on the public sector comparator. But this method has come under criticism in some industrial countries. The debate about its use in the industrial world raises questions about whether it is appropriate in developing countries. This paper discusses: how the method works; what the problems are; what the U.K. reforms do; and what about developing countries.